Section 7(f) is the only provision of the Act which allows an
employer to pay the same total compensation each week to an employee who
works overtime and whose hours of work vary from week to week. (See in
this connection the discussion in Secs. 778.207, 778.321-778.329, and
778.308-778.315.) Unless the pay arrangements in a particular situation
meet the requirements of section 7(f) as set forth, all the compensation
received by the employee under a guaranteed pay plan is included in his
regular rate and no part of such guaranteed pay may be credited toward
overtime compensation due under the Act. Section 7(f) is an exemption
from the overtime provisions of the Act. No employer will be exempt from
the duty of computing overtime compensation for an employee under
section 7(a) unless the employee is paid pursuant to a plan which
actually meets all the requirements of the exemption. These requirements
will be discussed separately in the ensuing sections.
